As a result of the most recent $1.9 Trillion relief package, the IRS will be issuing child tax credits in the form of monthly payments, expected to begin in July of 2021.
In 2021, taxpayers can receive a fully refundable credit for dependents:
- $3,600 per child under 6 years of age
- $3,000 per child under 18 years of age
These credits are available in full to single taxpayers with Adjusted Gross Incomes of $75,000 or less and $150,000 or less for married filing joint taxpayers ($112,500 or less for head of household)
There are two phase-out calculations that can apply to taxpayers that earn above these limits.
If you have questions about how this may impact your situation, please reach out to us.